Statoil to use 'COSLInnovator' for Troll production drilling

Statoil Petroleum AS (Statoil) has received consent from the PSA to use the ‘COSLInnovator’ mobile drilling facility for production drilling on the Troll field using the Controlled Mud Level method. The consent covers the use of ‘COSLInnovator’ for production drilling on 8½" sections in well 31/2-L-22 on the Troll field using the Controlled Mud Level method. Statoil received consent to use ‘COSLInnovator’ for production drilling at Troll in June 2012. The consent will now be extended to cover use of the Controlled Mud Level method. Controlled Mud Level (also called Dual Gradient Drilling – DGD) is a new technology, which Statoil has tested as a pilot project in another production well at Troll. The company now wishes to perform a new pilot study in order to implement improvements and experiences from the first pilot, before widespread deployment of the technology. According to Statoil's application for consent, in time the Controlled Mud Level method will allow wells to be drilled in depleted reservoirs when it is no longer possible to drill using conventional methods.

'COSLPioneer' contract to be temporarily suspended

Due to overcapacity in our rig portfolio, Statoil will lay up the ‘COSLPioneer’ rig in the fourth quarter of 2014. The rig is currently carrying out an assignment on the Visund field and is scheduled to complete this work at the end of September. “After a careful review of our drilling plan, we find it necessary to suspend ‘COSLPioneer’ for the time being,” says rig procurement responsible Tore Aarreberg. In the beginning of July Statoil also announced that the drilling rig ‘Scarabeo 5’ will be temporarily suspended. ‘Scarabeo 5’ will be taken out of operations at the end of September for the rest of the year. “At the moment we have three rigs contracted from COSL Drilling Europe. Our offshore organisation enjoys excellent cooperation with the contractor’s drilling teams, and COSL Pioneer has demonstrated consistent, high efficiency in drilling operations. We are in close dialogue with the contractor concerning how the suspension of the rig will be implemented in practice, and we continue to look forward to many years of cooperation with COSL on the Norwegian shelf,” Aarreberg says. The rig is contracted until 2016 and will be used for drilling and completion of production wells on the Norwegian continental shelf. ‘COSLPioneer’ being taken out of operation for a shorter period will have no impact on Statoil’s production targets or planned exploration activity on the Norwegian shelf. The company will still be drilling 20-25 exploration wells on the Norwegian shelf in 2014, where the company operates about two-thirds of all wells.

'COSLProspector' begins sea trials in China

The ‘COSLProspector’, the fourth semisub drilling rig to be provided to China Offshore Services Limited (COSL) has begun sea trails with cooperation from Yantai Harbor Pilotage and Beihai Resure Bureau. This sea trial is organized by CIMC Raffles, COSL, DVN, CCS, Rolls-Royce, Siemens and Kongsberg, aiming to commission and test for 609 sub-systems and 70 systems, including thrusters, PMS, DP, Close Ring, FMEA, communication, endurance capability, automatic cabin, lifesaving and mooring. During this sea trial, it is the first time to make engine management system close ring test applied to deep-water semisubmersible drilling rig in the whole world. Compared with usual power distribution design, it will reduce dynamos and 5% fuel. This environmentally-friendly system will be the mainstream power distribution design in high-performance semisubmersible drilling rig. The unit is expected to be delivered in November 2014 and does not yet have a firm contract in place.

COSL takes delivery of COSLProspector

COSLPROSPECTOR, the fourth deep-water semisubmersible drilling rig built by CIMC Raffles for COSL, has been delivered in Yantai, Shandong. The unit has the ability to work in the harsh Norwegian North Sea. The COSLPROSPECTOR is a DP3 vessel with length of 104.5 meters, width of 70.5 meters, height of 37.55 meters, and an operating depth of 1,500 meters, a drilling depth of 7,600 meters and a designed operating temperature of minus 20 degrees Celsius. A maximum variable deck load of 5,000 tonnes, the multi-function platform is also able to accommodate 130 personnel. It is classed by DNV and CCS, and satisfied with the strictest standards of PSA and NORSOK. Equipped with 10,000 controllers and alerts, the remote monitoring can be achieved in this high-automatic unit. On the base of GM-4000 series, COSLPROSPECTOR is jointly designed by AG (Agility Group), COSL and CIMC Raffles. Furthermore, CIMC Raffles is responsible for all detailed design, construction and commissioning work. It adopts the most advanced power management and environmentally-friendly design concept, and facilities with DP3 close bus-tie, variable frequency drive, escape chute system and auto ice-cleaning technology. Compared with last delivered COSL series semisubmersible drilling rigs (COSLPIONEER, COSLPROMOTER and COSLINNOVATOR), COSLPROSPECTOR adds ICE-T, CLEAN and WINTERIZATION, to satisfy ice-class, environmentally-friendly and low-temperature requirements. COSL Prospector is made up by 112 blocks, over 700 mechanical equipment, more than 800,000 meters cable and 35,000 pipes. There are 46,500 test points of MCR, which is increased by 45% compared with three semi drilling rigs of the same series delivered already. 118 significant technical improvements have been made. In addition, weight deviation between inclined test and theoretical calculation is 80 tons and the noise level is controlled less than 45 dB in the living area.

Statoil announces extension of suspended rig contracts

Due to continued overcapacity in its rig portfolio, Statoil has extended the suspension periods for COSL Pioneer, Scarabeo 5 and Songa Trym. The suspensions are also a result of the failed attempts to mature alternative tasks for the rigs. “When the rig contracts were signed it was challenging to ensure sufficient rig capacity. Today the activity is facing lower margins, a generally high cost level and subsequent lower profitability. It is therefore more demanding to mature profitable drilling targets,” says Statoil procurement head Jon Arnt Jacobsen. COSL Pioneer, Scarabeo 5 and Songa Trym were initially suspended until the end of the year from 8th October, 5th October and 20th November, respectively. COSL Pioneer will be suspended for an additional seven and a half months. The suspension periods for Scarabeo 5 and Songa Trym will be extended by one and a half months and one month, respectively. The extension period for Songa Trym may be reduced, or avoided, if acceleration of activities is achieved. “I would like to emphasise that the suspensions are not related to the rig deliveries. We are very pleased with the work they have done for us. These measures are necessary due to the overcapacity of rigs compared to the assignments we are prioritising. This situation is unfortunate, and we are doing what we can to minimise the extent of the suspensions,” Jacobsen says.

'COSLProspector' goes to work for CNOOC

On 30th April 2015, the COSLProspector semisub officially left the deep-water wharf of CIMC Raffles and joined the deepwater fleet of CNOOC. COSLProspector is the fourth deepwater semisubmersible drilling rig delivered by CIMC Raffles for China Oilfield Services Limited (“COSL”). It can operate in all sea areas except for the arctic. The operational water depth is up to 1,500 meters, whilst drilling depth is up to 7,600 meters, designed temperature -20?, accommodation for 130 personnel and the maximum variable deck load of 5,500 tons. The unit is equipped with most advanced National Oilwell Varco (“NOV”) drilling system and DPS-3 dynamic position system and is classed by both DNV and CCS. The COSLProspector is also classified for operations in Norway. Since the delivery of the unit on 19th November 2014, an 80 strong engineering team has been dedicated to the preparation project, including preparing the ROV system, combustion beam system and mud log system. 50 of them spent Chinese Spring Festival on the rig.

Statoil cancels 'COSLPioneer' contract

Statoil has decided to cancel the contract for the COSLPioneer semisub before the expiry date of August 2016. COSLPioneer has been suspended since 8th October 2014 and the unit was meant to finish its suspension period in August 2015, However, Statoil has been unable to find alternative activity for the rig during the intervening period and has now firmly cancelled the contract. “We regret the need to have to cancel this contract and wish to emphasise that this is not due to how the rig has delivered,” says supply chain senior vice president, Jon Arnt Jacobsen. “COSL Pioneer and its crew have demonstrated a good safety culture and delivered efficient drilling operations to Statoil. Cancellation is a consequence of overcapacity in the rig portfolio.”

'COSLProspector' spuds first well in South China Sea

China Oilfield Services Limited (“COSL”) said its deepwater drilling rig COSLProspector recently has commenced drilling operation for its first oil well in the deep water regions in South China Sea. In order to ensure smooth completion of this inaugural drilling operation, the Company made thorough pre-drilling preparations. This operation is carried out for an oil well sitting at a water depth of 1,289 meters, and a designed drilling depth of the rig at 3,626 meters. COSLProspector is a deepwater semi-submersible drilling rig equipped with Dynamic Position System with a maximum operation water depth of 1,500 meters and a maximum drilling depth of 7,500 meters. This rig has met requirements by both Det Norske Veritas (“DNV”) and NORSOK standards for offshore drilling platforms. This rig has met requirements to operate under freezing temperature, environmental-friendly and low temperature conditions, capable of performing operations in waters under extreme conditions. It can adapt to 90% of the water conditions in the world. Smooth operation of COSLProspector provides leading technology and equipment support to COSL’s participation in competition in the international deepwater drilling market.

Consent for drilling operations using COSLInnovator

Statoil Petroleum AS has received consent to use the COSLInnovator mobile drilling facility for drilling, completion, intervention, workover and well plugging on the Troll field. COSLInnovator is a semi-submersible drilling facility constructed at the Yantai Raffles Shipyard in China. The facility was issued with an Acknowledgement of Compliance (AoC) by the PSA in 2012, and has been on contract to Statoil on the Troll field since then. The Petroleum Safety Authority Norway has now granted Statoil consent for well operations in accordance with Statoil's application.

Consent for drilling operations using COSLPromoter

Statoil Petroleum AS has received consent to use the COSLPromotor mobile drilling facility for drilling, completion, intervention, workover and well plugging on the Troll field. COSLPromoter is a semi-submersible dynamically positioned drilling facility, type GM4000. The facility was built and assembled at Yantai Raffles Shipyard (YRS) in China. The drilling package was delivered by National Oilwell Varco (NOV) and built at Nymo in Grimstad. The facility was issued with an Acknowledgement of Compliance (AoC) by the PSA in 2012. The Petroleum Safety Authority Norway has now granted Statoil consent for well operations in accordance with Statoil's application.

Fatality on board COSL rig

It is with great sadness that Statoil and COSL have received confirmed information from the police that one person has died as a result of the breaking wave that hit the drilling rig COSL Innovator today. Two other people were injured and are receiving medical treatment ashore. The rig is now heading to shore under its own power, while evacuation takes place. COSL and Statoil were notified at 5 pm on Wednesday 30 December that three people had been injured when a breaking wave hit COSL Innovator. Statoil and COSL have mobilized their emergency response organizations. COSL Innovator is under contract to Statoil at the Troll field in the North Sea, west of Bergen. The rig had been taken off the well as a result of the bad weather before the incident occurred. The breaking wave also caused some damage to the rig's accommodation module. The injured persons have been flown to shore by Sea King helicopter from the Joint Rescue Coordination Centre and by one of Statoil’s own rescue helicopters. Statoil is assisting COSL with evacuation of the rig down to the safety crew. Evacuees are being flown ashore.

Delivery Ceremony COSLPioneer

The COSL Project team are very happy to announce that at 15.15 p.m. today, 15th November 2010 CDE took delivery of COSLPioneer. VP Project Terje Olsen and Project Manager Karl Petter Willumsen were present during the signing cermony. The Project Management would like to thank everyone who has been part of the Construction of COSLPioneer for the efforts put into this project. This delivery completes another milestone for COSL Drilling Europe, and the Project Team wishes Lage Nordby, Jan Bergsholm and the operational team good luck with the start up of COSLPioneer.

Statoil makes gas discovery near Visund field in Norway

Statoil Petroleum AS, operator of production licence 120, has concluded the drilling of wildcat well 34/8-17 S. The well was drilled on the northeast flank of the Visund field, in the northern part of the North Sea. The well's primary exploration target was to prove petroleum on the east flank of the Visund field in Lower Jurassic reservoir rocks (the Statfjord group). The secondary exploration target was to prove petroleum in Lower Jurassic (Lower Statfjord group) and Upper Triassic reservoir rocks (the Lunde formation). The well encountered an approx. 31-metre gross gas column in the Tarbert, Ness and Etive formations in the Middle Jurassic, about 20 metres of which were in sandstones with very good reservoir quality. In the immediately underlying reservoir rocks in the Rannoch formation in the Middle Jurassic, the well encountered an approx. 21-metre petroleum column in sandstones with poor reservoir quality. Traces of petroleum were also encountered in Lower Jurassic sandstones of variable reservoir quality in the Cook formation and in the Statfjord Group. It is unclear at this time whether there is oil or gas in the Rannoch and Cook formations, and in the Statfjord group. The Lunde formation is aquiferous. Data acquisition and sampling were conducted in the well, but it was not formation-tested. Preliminary estimates place the size of the discovery at between 0.5 and 2 million Sm³ recoverable oil equivalents. The licensees in production licence 120 will consider tying this discovery to existing infrastructure in the Visund area. This is the 24th exploration well in production licence 120, which was awarded in the 10th licensing round, part A, in 1985. 34/8-17 S was drilled to a vertical depth of 3187 metres below the sea surface, and was terminated in the Lunde formation in the Upper Triassic. The water depth is 378 metres. The well will now be permanently plugged and abandoned. Well 34/8-17 S was drilled by the COSL Pioneer drilling facility, which will now drill a sidetrack to a production target in the Visund field.

Small oil discovery in the Oseberg Area Unit

Statoil, together with partners in the Oseberg Area Unit, has made a small oil discovery in the production license PL053 in the North Sea. Statoil and its partners are in the process of concluding drilling operations in the exploration well 30/6-28S located in the production license PL053 in the Oseberg Area Unit. The well drilled by the rig COSL Pioneer proved an oil column of 12 metres in the Statfjord Formation. The estimated volume of the discovery is in the range of 12-18 million barrels of recoverable oil equivalents. "The oil discovery is located beneath the Oseberg field and is a good candidate to be connected to the Oseberg production facilities. These could be fast and high-value barrels for the partnership," says Knut Henrik Dalland, vice president Operations Oseberg. The oil discovery lies in the Crimp prospect, which was the secondary target for the exploration well 30/6-28S. The primary target was the Crux prospect that Statoil earlier defined as a high impact gas opportunity. With the Crux prospect Statoil tested a hypothesis for the existence of a separate gas-filled structure underlying the Oseberg field. However, the Crux prospect did not contain hydrocarbons. "The well 30/6-28S had two objectives. First, to test a new play in the area – the Crux prospect, which was a high risk / high reward opportunity. Second, to test an infrastructure-near prospect called Crimp, with relatively modest volumes but attractive economics. Unfortunately, we have not found gas in the Crux prospect, but we are pleased with the oil discovery in Crimp. Even though our high impact opportunity has not materialised, we have delivered some valuable additional resources to the Oseberg Unit," says Tore Løseth, vice president Exploration Licenses North Sea. After completion of the exploration well 30/6-28S, the COSL Pioneer drilling rig will move to the Glitne field. Exploration well 30/6-28S is situated in the production license PL053 in the Oseberg Area Unit in the North Sea. Statoil is the operator and has a 49.3 % interest. The partners are Petoro AS (33.6 %), Total E&P Norge AS (10.0 %), ExxonMobil E&P Norway AS (4.7 %) and ConocoPhillips Skandinavia AS (2.4 %).

Another discovery in the Gullfaks area

Statoil’s drilling of the Skinfaks South well in the North Sea has been completed and the estimated volume is between 1.9 and 6.9 million barrels of oil equivalents. This is the fourth infrastructure-near discovery in the Gullfaks area in a 10 month period. Light oil has been confirmed in Middle Jurassic reservoir rocks (Brent group) and a 80 metre high column in good-quality reservoir rocks. "We are currently evaluating how this discovery can be connected to the existing infra-structure," says Tore Løseth, exploration vice president for North Sea. Skinfaks South is located directly west of the Gullfaks field in the North Sea Tampen area, where Statoil is focusing on infrastructure-led exploration (ILX). "Our exploration strategy for the Norwegian continental shelf focuses both on high-impact discoveries and what we call time-critical ILX, which is exploration close to installations that within a couple of years will have the capacity to receive the oil and gas we find," Tore Løseth says. Gullfaks is a good example of how an area has developed after its first major discovery. Discovered in 1978 the Gullfaks field contained an estimated 2.5 billion barrels of oil equivalent. The discovery of fields such as Gullfaks South, Rimfaks and Valemon has later added another billion barrels of oil equivalent to the area. Statoil has continued its exploration activities around Gullfaks, and in one year four new discoveries have been made: Rutil, Opal, Brent 10 A/B and now Skinfaks South. They will add a total of 50-100 million barrels of oil equivalents. In 2012, 40% of Statoil's exploration wells on the Norwegian continental shelf will be ILX wells. ILX drilling is to be carried out close to Oseberg, Snorre and Norne.

Brugdan II well temporarily suspended

Statoil and its partners ExxonMobil and Atlantic Petroleum have decided to temporarily suspend operations on the Brugdan II well offshore the Faroe Islands. The Brugdan II well has drilled into the sub-basalt section, but the primary objective has not yet been reached. The decision to suspend the drilling is based on the expected bad weather as we enter the winter season. The Faroese authorities have authorised a suspension until end 2013. The well is located around 80 km offshore from the Faroe Islands and was spud in June 2012. It has been drilled with the COSL Pioneer semi-submersible rig in a water depth of around 450 meters. The Brugdan II well is the second exploration well that has been drilled in licence 006 which covers an area of approximately 579 square kilometres. Statoil has been in the Faroe Islands since 2000 and holds a significant acreage position with 6 operated licences. The licences are all sub-basalt and have a varied geology within different plays. The position in the Faroe Islands is in line with the company's exploration strategy of early access of scale and establishing a leading position in frontier areas. Statoil Færøyene AS has 50% equity in the Brugdan licence. The partners are partners ExxonMobil Exploration and Production Faroe Islands Ltd 49% and Atlantic Petroleum P/F 1%. The Brugdan II well is the 8th exploration well drilled in Faroese waters since 2001.

PSA carries out safety check on 'COSLInnovator'

From 10th to 13th June 2014, the Petroleum Safety Authority (PAS) Norway carried out an audit of Statoil's use of managed pressure drilling using ‘COSL Innovator’ on the Troll field. The objective of the activity was to audit that Statoil, the service providers, drilling contractor and other stakeholders, were planning, performing, and garnering experience from, the MPD operations in accordance with their own requirements, regulatory provisions and defined standards. The audit identified one non-conformity in connection with a safety-critical barrier element.

PSA conducts audit of 'COSL Promoter'

The Petroleum Safety Authority Norway (PSA) conducted during the period from 24th June to the 3rd July 2014, an audit of COSL Drilling Europe A/S’s (CDE) drilling rig ‘COSLPromoter’. The objective of the audit was to follow up on whether CDE had implemented a system that maintains the requirements for risk management in accordance with the regulations. The PSA identified a discrepancy related to the documentation for preparedness; it also identified improvements related to risks and barrier management, update documentation, emergency manual, emergency barriers, simulator training and maintenance.